Tech employees are getting the message: Playtime’s over

The once-glamorous tech industry, known for its lavish perks and flexible work culture, has undergone a radical transformation. A combination of economic realities, post-pandemic adjustments, and political pressure has pushed companies to prioritize efficiency over employee comfort.

From Silicon Valley startups to Big Tech giants, the mantra has become clear: “Do more with less.”

A Culture Shift: Work Harder or Get Cut

Tech executives are no longer shy about enforcing stricter workplace expectations. Leaders who once promoted work-life balance have changed their stance, openly embracing intense workloads.

Shopify CEO Tobi Lütke, who previously championed work-life balance, now admits to long working hours:

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“I’m at home for dinner but I work at least 10 or so hours a day and a lot of the weekend.”

Elon Musk’s aggressive cost-cutting at X (formerly Twitter) — where he slashed 80% of the workforce — has influenced how other companies approach workforce reductions. Musk’s tactics were initially criticized, but as Brad Porter, CEO of Cobot, observed:

“People paid attention because the prevailing wisdom was you couldn’t take out that much of an engineering organization and put that much instability on it and not have it fall over. He pushed right to the edge of it actually falling over, but it didn’t fall over.”

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Now, CEOs of major tech firms are implementing mass layoffs and performance-based cuts to streamline operations.

Layoffs and Rising Performance Expectations

Sweeping layoffs have become the new norm. Between 2022 and early 2023, Meta, Amazon, Google, and Microsoft collectively laid off over 60,000 employees.

Even companies once seen as employee-friendly are tightening the reins:

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• Meta cut 4,000 employees this year, with CEO Mark Zuckerberg emphasizing a return to “masculine energy”.
• Amazon enforced stricter return-to-office policies, requiring employees to be in the office every weekday.
• Microsoft fired 2,000 employees labeled as “low performers”—without severance or health benefits.
• Google pushed an “efficiency drive,” with co-founder Sergey Brin recommending that employees working on AI tools put in 60-hour workweeks and report to the office daily.

At TikTok, performance pressure has intensified. Employees described the new goals as “unattainable”, leading some to take mental health leave. One former employee shared:

“You feel like if you’re not hitting a target, even if it’s a moving target, you’re in trouble. For me, it was just feeling like a failure, like I couldn’t do anything right.”

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Startups Follow Big Tech’s Lead

Smaller companies are also adopting tougher performance standards. The days of extravagant perks, remote work flexibility, and relaxed cultures are fading fast.

As Natan Fisher, founder of recruiting firm SingleSprout, noted:

“Founders aren’t sugarcoating it. I’ve had a few cofounders tell employees they aren’t working hard enough, and, ‘If you’re not all in, no hard feelings, we can give severance, but we can’t slow down.’”

Meanwhile, Mang-Git Ng, founder of Anvil, believes the shift is necessary:

“I think many individuals—founders included—lost sight of the true goal of a company. It is to make money.”

The New Tech Reality

Tech workers who once enjoyed stability, high salaries, and a luxurious work environment are now facing an industry that demands relentless performance. While companies continue to innovate, their focus has shifted from growth at all costs to profitability and efficiency.

The message from Silicon Valley is clear: The days of pampering employees are over, and a new era of high intensity, high expectations, and high stakes has begun.

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